A demand letter starts the formal legal process for South Carolina personal injury claims, but it may take a while after sending it before you receive a settlement. Depending on your injuries, questions over liability, and other factors, it could be several weeks or months before your case concludes.
As frustrating as it is when an insurance company drags out settlement negotiations, it’s crucial to remain patient and let your personal injury lawyer fight for fair compensation. They can also help you understand what factors might affect the demand letter settlement timeline for your case.
What Is a Demand Letter?
A demand letter is a formal document your legal team sends after an accident to the at-fault party (or their insurance company) outlining a compensation claim. It serves as the starting point for settlement negotiations, explains your injuries and other losses, and the amount you seek to resolve the claim. Demand letters often aim to encourage a fair settlement without pursuing a lawsuit, though many personal injury claims still involve extensive negotiations.
What Sort of Information Should the Demand Letter Include?
Most demand letters in South Carolina personal injury claims include the following information:
- Accident Details – A clear account of how the accident occurred, including the date, time, location, and parties involved
- Liability Explanation – A description of why the other party is at fault, supported by evidence such as police reports, witness statements, etc.
- Injuries and Medical Treatment – A summary of injuries you sustained, treatments you received, and your ongoing medical needs, as well as medical records or bills to support your argument
- Financial Losses – An itemized list of your financial losses, including your medical expenses, lost wages, and out-of-pocket costs related to your injuries
- Non-Economic Damages – A discussion of your intangible losses, such as your pain and suffering, emotional distress, or diminished quality of life
- Supporting Evidence – References to attached documentation, such as photos of the accident, medical records, repair estimates, or witness statements, to strengthen your claim
- Settlement Amount – A specific monetary amount to resolve the claim, which should reflect your economic and non-economic losses
- Deadline for Response – A reasonable timeframe for the recipient to respond to the letter, encouraging prompt action
Is the Insurance Company Required to Accept a Demand Letter?
No, the insurance company is not required to accept a demand letter. The letter serves as a negotiation tool rather than a legally binding agreement. The insurer may agree to your terms, make a counteroffer, or reject your claim entirely. If your demand letter does not lead to a settlement, you can pursue further legal action, such as filing a lawsuit, to seek compensation for your losses.
Are There Any Factors That Could Affect How Long It Can Take to Receive a Settlement from a Demand Letter?
Many factors specific to individual claims affect demand letter settlement timelines. Some of these factors include the following:
- Complexity of the Case – Cases involving multiple parties, severe injuries, or disputed liability can take longer to resolve because they require more investigation and negotiations.
- Insurance Company Response Time – Some insurers respond quickly, while others may delay providing feedback or counteroffers. This can significantly impact the timeline.
- Quality of the Demand Letter – A well-prepared letter with detailed evidence and clear arguments can expedite negotiations. Poorly written or incomplete letters may lead to delays.
- Liability Disputes – If the insurer disputes who caused the accident or the extent of your losses, negotiations can take longer to resolve.
- Policy Limits – Claims close to or exceeding policy limits may require additional review by the insurance companies, slowing the settlement process.
- Medical Treatment Completion – If your medical care is ongoing, insurers may wait until your treatment concludes to assess your total losses.
- Litigation Threats – Your legal team’s willingness or unwillingness to pursue a lawsuit can affect how quickly the insurer acts. If an insurance company believes you’re willing to take your case to trial, they may be more likely to settle quickly to avoid an expensive, unpredictable court case.
What Do You Do if the Insurance Company Denies the Demand Letter and Will Not Settle?
If the insurance company denies the demand letter and refuses to settle, you may need to escalate your claim.
Start by reviewing their reason for the denial and gathering additional evidence to support your case. This could include obtaining more detailed medical records, witness statements, or expert opinions. If negotiations stall, consider filing a lawsuit against the at-fault party.
An experienced personal injury attorney can guide you through the litigation process, advocate for your rights in court, and help you seek fair compensation for your losses.
What Should You Do if the Insurance Company Refuses to Respond to the Demand Letter?
If the insurance company refuses to respond to your demand letter, follow up with a written reminder and a phone call to confirm they received it. Keep detailed records of all communication attempts. If they still fail to respond, it may be time to involve an attorney.
A personal injury lawyer can take over communications, put additional pressure on the insurer, and, if necessary, file a lawsuit. Ignoring a demand letter is not a valid reason to delay your claim, and legal action may be the next step to resolve your case.
What Happens if the Insurance Company’s Delays Are Pushing My Case Close to the Statute of Limitations Deadline?
Under South Carolina’s statute of limitations, you usually have three years from the date of an accident to file a personal injury lawsuit. If this deadline is approaching, it’s time to contact an attorney (if you haven’t already) and take your case to court.
While you can pursue a personal injury claim even after the deadline to file a lawsuit passes, the insurance company can keep stalling because you have no legal mechanism to force them to pay your claim. A court case can significantly extend your demand letter settlement timeline, but it’s better than letting the deadline pass without protecting your rights.
Contact a South Carolina Personal Injury Lawyer
At McKinney, Tucker & Lemel LLC, our South Carolina personal injury attorneys have protected the rights of the injured for nearly 50 years. We know the local legal system inside out and how to build a compelling case for compensation. We can handle all the legal work, including sending a demand letter and negotiating on your behalf for a fair settlement, while you focus on healing. You don’t owe us any fees unless we recover compensation for your accident.
Call now or complete our contact form for a no-obligation consultation.
